HEALING WOUND RIPPED OPEN
It’s no secret that there has been a lot of unrest in Galkacyo in recent months. Between the two regional states violent confrontations with each other and the recent u.s drone attacks, it has been a turbulent time for galkacyo. Now, new numbers show just how much of an impact this unrest is having on Somalia’s economy.
Overall, Somalia’s economy has recently been growing at an annual rate of approximately 13 percent. However, in the
third quarter of this year, which contained the battles in Galkacyo and a significant drop in business and investment, the nation’s economy actually shrank by .9 percent. This was the first drop in Somalia’s economy in a given quarter in four years, which would seem to indicate that the constant conflict between Galmudug & Puntland states are beginning to take an even larger toll on the nation.
That drop in the economy is important to note. Somalia, despite the unrest it has faced over the years, has always done business unrestricted between the regions, But this recent unrest has contributed to a reverse development approach policy on the part of the two waring clan factions in an unprecedented move in Somali Business customs.
Then there is the amount of military spending that one has to factor in to Somalia’s current economic state. The Galkacyo conflict will cost more than the federal government can afford by sending somali national army units to mediate between the waring clans, and as a result, the nation will be facing a larger budget deficient than expected next year. conflict costs Somlia approximately 60 percent of its gross domestic product.
It’s difficult to say how long these downward economic trends will continue in Somalia, but one thing is clear: the nation’s economy is clearly tied to violence in the country. As peace is restored, Somalia economy will improve.
Continue to pray for Galkacyo and for peace in Somalia.
comments (0)